Vietnam Golf: From Fairways to Balance Sheets – The Cash Flow Puzzle

When the 2026 VGA Tour concluded with a 40% increase in total prize money compared to the previous season, many celebrated it as a sign of a new era for Vietnamese golf. But to me, someone who has spent nearly a decade tracking club finances from the K League to golf courses in Incheon, that number only reflects part of the picture. A rise in total prize money is a good signal, but when I look at the revenue structure, I see a worrying imbalance: at least 70% of that money comes from sponsors, not from sustainable sources like media rights or green fees. This is not a criticism, but an early warning. The current context of Vietnamese golf is very similar to what I have seen in other emerging leagues. The number of golf courses increased from 30 to over 50 within five years, young golfers like Nguyen Thuy Chau or Le Khac Dung are beginning to make their mark internationally, and the government has set a goal to make golf a key sports industry. However, the financial system behind this growth is still immature. Major sponsors, mostly real estate and banks, are spending money for short-term brand promotion, not because they truly believe in the long-term value of golf. This creates a structural risk: when the real estate market slows down or banks tighten spending, the cash flow into golf could dry up suddenly. Based on my experience watching matches and analyzing finances, I would like to offer a different perspective. The success of Vietnamese golf should not be measured by the number of tournaments or total prize money, but by the ability to build a diversified revenue base. Currently, green fees at Vietnamese golf courses average around 1.5 million VND per round, but the occupancy rate at high-end courses only reaches 60-70%. Instead of raising fees, operators should focus on improving the experience to increase the number of rounds played, while developing long-term membership packages to create stable income. I have seen this model work effectively in Korea, where golf clubs can maintain stable cash flow even during economic downturns thanks to a loyal membership system. Another critical blind spot is the youth development system. Vietnam has promising young talents, but the support system after they leave academies is almost non-existent. I have witnessed excellent young golfers having to quit because they lacked funding to compete internationally, while investment funds pour money into building new golf courses. This is a severe waste of opportunity cost. Instead of investing 100 million USD into a fiftieth golf course, managers should allocate part of the budget to sponsor the top 10 most promising young golfers each year. A successful golfer on the international stage will bring far more media and sponsorship value than a new golf course. My contrarian view is that the current boom of Vietnamese golf could be a bubble if not managed properly. I am not saying Vietnamese golf will collapse, but I believe that if sponsor cash flow accounts for too large a share, the entire ecosystem will be affected when the economy fluctuates. The pandemic didn't create the crisis; it just sent the overdue bill. If Vietnamese golf leaders do not proactively diversify revenue sources now, they will face a liquidity crisis when the sponsorship market becomes more difficult. I recall a lesson from Incheon United, where I used to work. At that time, the club relied too heavily on one main sponsor, and when that sponsor withdrew, the entire financial plan collapsed. It took us three years to rebuild. Vietnamese golf may not be a club, but it is an ecosystem with the same structural problem. Cash flow never lies, but the balance sheet knows. If I were an investor, I would look at the ratio of sponsor revenue to recurring revenue, and if that ratio exceeds 50%, I would be very cautious. However, I also see positive signals. Golf courses in Da Nang and Binh Thuan are beginning to build resort models, attracting international tourists and creating stable foreign currency income. Some youth golf academies have signed cooperation agreements with foreign academies, giving young golfers opportunities to compete internationally. These models need to be replicated. I believe Vietnamese golf has the potential to become a top golf destination in Asia, but that requires a long-term strategic mindset, not short-term glamour. The final question I want to raise is: will Vietnamese golf leaders have enough patience to build a sustainable financial foundation, or will they continue to chase illusory growth numbers? The answer will determine not only the future of Vietnamese golf, but also a lesson for other sports on the rise. A good model does not predict the future; it exposes what we choose not to see.